SUN-TIMES CONFIRMS IT`S FOR SALE

Daniel Rosenheim and Charles StorchCHICAGO TRIBUNE

Chicago Sun-Times President Robert E. Page made it official Thursday: The newspaper is for sale.

In a memorandum to employees that came two days after he had denied any immediate plans for such a sale, Page said Sun-Times owner Rupert Murdoch had determined to sell the newspaper to meet regulatory guidelines that prohibit the joint ownership of a newspaper and a television station in the same city. Murdoch, an Australian media baron whose newspaper stations include the Sun-Times and New York Post, is buying six television stations from Metromedia Inc., including WFLD-TV (Channel 32) in Chicago and WNEW-TV in New York.

''Yes, it`s true that Rupert Murdoch has decided to sell the Sun-Times,'' said the memo from Page, who has been traveling in China and was said now to be in Hong Kong. ''He has determined he will comply with FCC regulations, which now prohibit cross-ownership.''

Although speculation over the newspaper`s future has been rife ever since the news of the Metromedia deal surfaced late last week, Page`s assertion Thursday caught even high-echelon Sun-Times employees by surprise.

In a separate memo to the editorial staff, Sun-Times Editor Frank Devine said he would have called a staff meeting to ''tell you everything about the projected sale of the Sun-Times'' but added that he didn`t have sufficient information to ''sustain a conversation of much substance.''

''I`m about as surprised as you are by the recent turn of events,''

Devine wrote.

Editorial employees, many of whom were employed there during the protracted negotiations that culminated in the paper`s sale to Murdoch in January, 1984, expressed sentiments ranging from concern to resignation to bitterness.

''It was rough the first time, and it`s not going to be any easier the second time,'' a reporter said. ''There`s a lot of gallows humor around here.''

Perhaps ironically, considering the frosty reception that Murdoch received initially from many Sun-Times employees, there was concern that the paper might suffer under new ownership, particularly if it weren`t

sufficiently well-capitalized to finance an aggressive news venture.

''People are worried that they`re going to look back on Murdoch`s ownership as the good old days,'' one writer said.

According to one unconfirmed rumor, Murdoch has already agreed to sell both the Post and the Sun-Times to a ''new business entity'' based in Washington. Murdoch, who was returning to New York from London, was unavailable for comment, but sources close to the publisher said they were unaware of any such deal.

To date, only a loose-knit group of local investors represented by Chicago lawyer William Singer has conceded an interest in a possible purchase. Late Thursday, Singer said he had held what he called useful discussions Wednesday with Murdoch representatives about a possible transaction. He declined to elaborate, although it`s believed the investors he represents would be unlikely to buy the paper unless they also obtained the valuable downtown property on which it is situated.

In 1983, Singer helped lead a group in an unsuccessful bid for the paper. The group was backed by First National Bank of Chicago and composed in part of real estate developer Neil Bluhm, former Sun-Times Publisher James Hoge and industrialist Lester Crown.

Singer said there were ''lots of people who want to help put a deal together,'' but he declined to identify them.

Noting Page`s pointed assertion that ''Murdoch will not ask for special privileges,'' one source close to the publisher said Murdoch was determined not to let perceptions of the cross-ownership problem interfere with his acquisition of the TV stations.

As someone who must become an American citizen before obtaining FCC approval for the purchase, Murdoch is believed to feel particularly vulnerable to any charge that he might be seeking special treatment.

However, there`s considerable speculation that Murdoch thinks he may be able to persuade the FCC to let him keep one or both papers, particularly if he has difficulty finding a buyer for the money-losing Post. The Post is Murdoch`s flagship paper and chief editorial voice. There was no memorandum comparable to Page`s issued to Post employees Thursday.

Among those mentioned as possible purchasers for the Post are Tribune Co. and Times Mirror Co. Both companies have declined comment, but it`s believed they may want to use the Post`s Manhattan printing facilities in conjunction with their respective existing properties, the New York Daily News and Newsday, a Long Island daily.

It isn`t clear, however, whether the Post`s letter-press printing equipment would be compatible with the offset process used by both the Daily News and Newsday.

Although speculation over the newspaper`s future has been rife ever since the news of the Metromedia deal surfaced late last week, Page`s assertion Thursday caught even high-echelon Sun-Times employees by surprise.

In a separate memo to the editorial staff, Sun-Times Editor Frank Devine said he would have called a staff meeting to ''tell you everything about the projected sale of the Sun-Times'' but added that he didn`t have sufficient information to ''sustain a conversation of much substance.''

''I`m about as surprised as you are by the recent turn of events,''

Devine wrote.

Editorial employees, many of whom were employed there during the protracted negotiations that culminated in the paper`s sale to Murdoch in January, 1984, expressed sentiments ranging from concern to resignation to bitterness.

''It was rough the first time, and it`s not going to be any easier the second time,'' a reporter said. ''There`s a lot of gallows humor around here.''

Perhaps ironically, considering the frosty reception that Murdoch received initially from many Sun-Times employees, there was concern that the paper might suffer under new ownership, particularly if it weren`t

sufficiently well-capitalized to finance an aggressive news venture.

''People are worried that they`re going to look back on Murdoch`s ownership as the good old days,'' one writer said.

According to one unconfirmed rumor, Murdoch has already agreed to sell both the Post and the Sun-Times to a ''new business entity'' based in Washington. Murdoch, who was returning to New York from London, was unavailable for comment, but sources close to the publisher said they were unaware of any such deal.

To date, only a loose-knit group of local investors represented by Chicago lawyer William Singer has conceded an interest in a possible purchase.

Late Thursday, Singer said he had held what he called useful discussions Wednesday with Murdoch representatives about a possible transaction. He declined to elaborate, although it`s believed the investors he represents would be unlikely to buy the paper unless they also obtained the valuable downtown property on which it is situated.

In 1983, Singer helped lead a group in an unsuccessful bid for the paper. The group was backed by First National Bank of Chicago and composed in part of real estate developer Neil Bluhm, former Sun-Times Publisher James Hoge and industrialist Lester Crown.

Singer said there were ''lots of people who want to help put a deal together,'' but he declined to identify them.

Noting Page`s pointed assertion that ''Murdoch will not ask for special privileges,'' one source close to the publisher said Murdoch was determined not to let perceptions of the cross-ownership problem interfere with his acquisition of the TV stations.

As someone who must become an American citizen before obtaining FCC approval for the purchase, Murdoch is believed to feel particularly vulnerable to any charge that he might be seeking special treatment.

However, there`s considerable speculation that Murdoch thinks he may be able to persuade the FCC to let him keep one or both papers, particularly if he has difficulty finding a buyer for the money-losing Post. The Post is Murdoch`s flagship paper and chief editorial voice. There was no memorandum comparable to Page`s issued to Post employees Thursday.

Among those mentioned as possible purchasers for the Post are Tribune Co. and Times Mirror Co. Both companies have declined comment, but it`s believed they may want to use the Post`s Manhattan printing facilities in conjunction

with their respective existing properties, the New York Daily News and Newsday, a Long Island daily.